Indiana Toll Road Concession Agreement
Indiana Toll Road is a limited 157-mile access that separates northern Indiana from the Ohio border to the Illinois State Line near Chicago. The ITRCC is required to operate the toll road under a lease agreement signed in 2006 and has the exclusive right to collect toll revenue for the duration of the contract, which has a residual term of 66 years. ITRCC participates in a voluntary bankruptcy proceeding under Chapter 11 of the Bankruptcy Act. In accordance with a pre-packaged itRCC recovery plan, which was confirmed by order of the Bankruptcy Court, the special committee of the ITRCC Board of Directors was authorized to initiate a tendering procedure for the sale of ITRCC and to authorize the sale of ITRCC. In accordance with this power, the Special Committee authorized the sale of ITRCC to IFM investors pursuant to the terms of the purchase and sale agreement. In March 2015, following the bankruptcy of ITRCC in 2014, IFA ifM Investors granted a new lease of $5.725 billion over 66 years. Almost all sales funds are used to repay creditors who hold ITRCC`s debts. IFM plans to invest $260 million in capital improvements during the first five years of the concession to address the degradation of sidewalks, bridges and travel spaces. The investment becomes the thirtieth infrastructure asset in IFM Investors` current portfolio.
This is IFM Investors` second investment in North American toll road infrastructure in 2015 and the fourth toll road in IFM`s infrastructure portfolios. The history of Indiana Toll Road shows a long-standing link with economic growth. The toll road, in service since 1956, is a large freight corridor that serves a large mature and industrially developed regional economy. The highway is the only multi-lane line between Chicago and the Ohio Turnpike and as such is an important part of the transportation and logistics network in the Midwest and Northeast. NEW YORK—IFM-Investors has entered into a definitive sale and sale agreement on behalf of the IFM Global Infrastructure Fund for the acquisition of ITR Concession Company LLC („ITRCC“). ITRCC is a party to a concession and leasing agreement between ITRCC and the Indiana Finance Authority („IFA“) under which ITRCC operates and maintains Indiana Toll Road, a 157-mile, limited and divided highway in the state of Indiana. The road stretches over northern Indiana, from the Ohio border to the Illinois State Line near Chicago, and leads directly to two toll roads on the state lines: the Chicago Skyway to the west and the Ohio Turnpike to the east. The concession agreement obliges ITRCC to operate and maintain the road and grants ITRCC the exclusive right to collect tolls on the road for the duration of the concession contract, which has a residual term of 66 years. „The acquisition of ITR Concession Company by IFM Investors is part of our stated approach to expanding our North American asset portfolio, where we have more than 70 U.S.
pension funds as partners,“ said Julio Garcia, Infrastructure Manager – North America at IFM Investors. „We believe Indiana Toll Road is a great addition to our toll and other infrastructure portfolio.“ ITR is a 157 km limited access road in the state of Indiana. The road stretches over northern Indiana, from the Ohio border to the Illinois State Line near Chicago, and leads directly to two toll roads on the state lines: the Chicago Skyway to the west and the Ohio Turnpike to the east. For its 34 miles west of the border with Illinois, it crosses the urban area around Gary, Indiana.